equity capital increase

Foreign institutional investors hold 50% of PPC for first time

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Power utility PPC is entering a new era following yesterday’s completion of the corporation’s equity capital raise, which lowers the Greek State’s share in PPC below 51 percent, to 34 percent, for the first time in the utility’s 70-year history. Foreign institutional investors now hold an overall 50 percent stake in PPC, up from 27 percent, while domestic stakeholders have a 16 percent share.

Greek governments will no longer be able to do as they please with PPC. Issues concerning management, policies, strategic decisions and new hirings will now require the approval of foreign investors at the general shareholders’ meetings. The Greek State will remain influential with its 34 percent stake.

The corporation’s new equity line-up promises to transform PPC into a far more efficient corporation capable of achieving more favorable terms in capital markets.

The Covalis and Zimmer funds, among the new multinational stakeholders, specialize in utility investments. Wellington is regarded as a highly selective fund, more so than Blackrock, also part of PPC’s new equity line-up.

PPC easily achieved its 1.35 billion-euro target through the equity capital increase. The business plan, approved on the eve of the equity capital increase, envisions investments worth 8.4 billion euros between 2022 and 2026, but the amount is now seen rising to 9.3 billion euros. Investments are planned in renewables, networks, Balkan investments and waste management.

More than half the sum of new investments, or 55 percent, is planned for the RES sector, both in Greece and abroad. A further 20 percent is planned for distribution networks, 7 percent for conventional energy sources, 4 percent for waste-to-energy units and 3 percent for retail concerns.

Geographically, 85 percent of PPC’s new investments will be made in Greece, and 15 percent in the Balkans, primarily in Romania and Bulgaria.

PPC equity capital raise ending, shares must now be distributed

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Power utility PPC now faces the favorable predicament of having to decide on how to distribute shares to funds following the overwhelming response to the utility’s equity capital raise that attracted dozens of major international players.

The final value of the offers submitted is expected to be announced today from 4pm onwards, once the book building process has been completed. Yesterday, the tally was four times over PPC’s 1.35 billion-euro target. Some 3.5 billion euros in offers are believed to have been made by international investors.

PPC needs to distribute the equity capital raise’s new shares by November 10 so that they may begin trading on the bourse by November 16.

Funds that have stepped forward with official offers, all worth over 100 million euros each, include Oak Hill, Covalis Capital LLP, Ghisallo Capital Management LLC, Marshall, Schonfeld Strategic, Zimmer Partners LP, Graticule Asset Management, and Helikon Investments, which already holds a 6.48 percent stake in PPC.

The equity capital raise will increase the stake of private investors from 34 percent to 66 percent for a multinational line-up. It will offer the corporation fresh capital for its enormous investment plan. PPC is striving to implement an ambitious 5 billion-euro investment plan by 2024.

PPC equity capital raise a hit, funds must now be picked

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Power utility PPC’s equity capital raise, whose ongoing book building process ends tomorrow, has already achieved its target, a 1.35 billion-euro sum with an upper share price of 9 euros, the sum of offers greatly exceeding this sum, and now finds itself faced with the  favorable predicament of having to decide which of the more than ten participating international major-scale funds will be given the biggest share packages.

Yesterday’s requests were worth a total of 3.2 billion euros, taking the procedure’s total amount of offers made so far to four times the 1.35 billion-euro target, which would have been inconceivable just a couple of years back.

The major international funds have submitted requests for share packages each worth over 100 million euros. PPC cannot satisfy them all and will have to decide which of these participants it considers most formidable and with long-term investment intentions. These will receive the share packages they have requested and the others will be given smaller stakes.

The equity capital raise will increase the stake of private investors from 34 percent to 66 percent and offer the corporation fresh capital for its enormous investment plan. PPC is striving to implement an ambitious 5 billion-euro investment plan by 2024.

The funds obviously see major investment returns over the next few years. PPC’s EBITDA is currently at 900 million euros but is forecast to rise to 1.73 billion euros by 2026 with net profit of 665 million euros and total turnover of 5.3 billion euros.

PPC makes waste-to-energy plans, RES moves worth €2bn in Balkans

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Power utility PPC plans to develop waste-to-energy plants and also make RES investments in the Balkans worth two billion euros, a bulleting attached to the corporation’s ongoing equity capital raise, offering an update on the board’s strategic plan, has revealed.

The book building process, which began yesterday, will run until Thursday. Investors anticipate that PPC will enter new circular economy activities and also expand its green interests beyond Greece’s borders.

PPC expects to raise 1.35 billion euros through the equity capital raise, which will partially fund the corporation’s ambitious 5 billion-euro investment plan covering 2022 to 2024.

The power utility had initially announced a plan to enter the waste-to-energy sector in 2020 and is now reviving this part of its strategic plan.

This plan is in line with the overall national policy for waste management, developed in response to condemnation by European institutions of Greece for the country’s uncontrolled landfill management.

The power utility is expected to adopt advanced waste-to-energy technologies used in Europe’s north for the development of units making minimal environmental impact.

As for renewable energy, PPC has planned investments worth two billion euros between 2022 and 2026. Of this total, 820 million euros is planned to be invested between 2022 and 2024 and 1.11 billion euros from 2024 to 2026, according to the equity capital raise’s bulletin.

These sums are expected to be used for RES portfolio acquisitions. PPC is aiming for a green portfolio of 7.2 GW by 2024 to include extensive investments in the Balkans. Bulgaria and Romania are being targeted as markets of major potential.

 

PPC equity capital raise target reached in first hour of process

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Power utility PPC’s equity capital raise objective, a 1.35 billion-euro sum, at 9 euros per share, was reached approximately one hour into the book building process, launched yesterday, sources informed.

This essentially means that the procedure’s shares will not be sold at a lower price (8.50 euros) but at the upper limit price of 9 euros per share.

The book building process will run until November 4. Shares will then be distributed to investors based on the offers they have submitted.

The equity capital raise is the first to staged by PPC twenty years after its bourse entry. An 85 percent proportion of the 1.35 billion-euro in capital is expected to be provided by foreign funds.

The equity capital raise will increase the stake of private investors from 34 percent to 66 percent and offer the corporation fresh capital for its enormous investment plan.

PPC is striving to implement an ambitious 5 billion-euro investment plan by 2024.

The Greek State’s share in PPC will drop to below 51 percent for the first time in the corporation’s 70-year history. However, the Greek State will maintain management as well as blocking minority rights.

 

EBRD commits €75-100m for PPC equity capital raise

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Further highlighting the tremendous investor interest in power utility PPC’s equity capital raise, EBRD has signed to participate with capital of between 75 and 100 million euros, a move following a commitment by major fund CVC Capital to invest between 350 and 396 million euros for a 10 percent stake in the energy company.

The equity capital raise’s book building commences tomorrow with over ten institutional investors from abroad considered certain to participate.

CVC and EBRD have both signed agreements with PPC while a series of other interested parties have pledged to participate. These include Fidelity, Oakhill, Shroeders, Apollo, Bluecrest and Pictet.

Despite Blackrock’s extensive talks with PPC, as well as City and Goldman Sachs, coordinating the equity capital raise, this major fund may not participate for reasons not yet known, according to some sources. Until now, Blackrock’s participation was seen as certain.

The raise may attract as much as 1.35 billion euros, of which 85 percent, or 1.15 billion euros, is expected to be provided by foreign investors.

The equity capital raise will increase the stake of private investors from 34 percent to 66 percent and offer the corporation fresh capital for its enormous investment plan.

PPC is striving to implement an ambitious 8.4 billion-euro investment plan by 2026.

PPC equity capital raise’s share price, volume to be set today

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The price level and volume of new shares to be offered through power utility PPC’s equity capital raise are expected to be finalized at a board meeting today.

The level of investor interest leading to the procedure has indicated that PPC may raise capital in excess of 1.2 billion euros, if reports pertaining to the issuance of between 130 and 140 million new shares are confirmed.

The equity capital raise will increase the stake of private investors from 34 percent to 66 percent and offer the corporation fresh capital for its enormous investment plan.

PPC is striving to implement an ambitious 8.4 million-euro investment plan by 2026.

 

 

PPC equity capital raise, early November, to reach €1.1-1.2bn

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Power utility PPC’s imminent equity capital raise, approved at yesterday’s general shareholders’ meeting and now set for the board’s approval, expected late October or early November, will inject a sum estimated between 1.1 and 1.2 billion euros into the company’s coffers, estimates have indicated.

Over the next ten days or so, PPC will continue promoting the equity capital raise to funds and institutional investors.

The equity capital raise will increase the stake of private investors from 34 percent to 66 percent and offer the corporation fresh capital for its enormous investment plan.

To date, the value of requests submitted by investors ahead of the book building process, expected late this month, has reached nearly two billion euros, triple the equity capital raise’s initial sum of 750 million euros.

The PPC board plans to meet either October 29 or November 1 to decide on the level of the equity capital raise, seen exceeding one billion euros, and also to approve it.

The book building process, to immediately follow, is expected within the first ten days of November.

Small-scale company shareholders expressed complaints during yesterday’s session, troubled by the prospect of being completely overshadowed, but PPC’s administration responded by noting they were free to take part in the upcoming equity capital raise.

Major funds, including CVC Capital and Blackrock, are believed to have requested big stakes during lead-up talks with PPC officials, while the overall investor interest is high.

 

PPC shareholders meet today to approve equity capital raise

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Power utility PPC is scheduled to stage a landmark general shareholders’ meeting today for approval of its imminent equity capital raise, which, once completed early next month, will increase the stake of private investors from 34 percent to 66 percent and offer the corporation fresh capital for its enormous investment plan.

The company board is anticipating complaints at today’s session from small-scale investors, mainly domestic shareholders troubled by the prospect of losing preferential shareholder rights.

Major international funds and institutional investors are preparing to move in and overshadow the smaller private investors. PPC has promised smaller shareholders will not be neglected.

To date, the value of requests submitted by investors ahead of the book building process, expected late this month, has reached nearly two billion euros, triple the equity capital raise’s initial sum of 750 million euros.

In response, PPC appears to have revised its equity capital raise, which could exceed one billion euros.

The strong investor interest is reflected by the company’s share price, which ended trading yesterday at €9.15, fully regaining losses incurred over the past three weeks.

Genop, PPC’s main union group, has announced strike action for today in protest against the equity capital raise, as well as a news conference.

Major foreign fund interest in PPC equity capital raise

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Foreign funds are expressing major interest in power utility PPC’s upcoming equity capital raise, whose 750 million-euro plan appears set to be oversubscribed approximately three times, according to banking and brokerage sources.

Though the procedure is not expected to take place until early next month, funds and institutional investors have already submitted requests worth nearly two billion euros, five days before the October 19 general shareholders’ meeting, during which PPC shareholders will be asked to approve the company’s equity capital raise.

The company’s share price, which ended trading yesterday at €8.90, has now fully regained all losses incurred over the past three weeks, reflecting increased overall confidence in the forthcoming equity capital raise.

If the strong investor interest in the lead-up is confirmed through the book building process, expected late in October to determine the price at which the share will be offered, then PPC can expect to raise at least one billion euros through the equity capital raise.

Major foreign fund interest in PPC equity capital increase

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Power utility PPC, preparing to stage an equity capital increase later this month, seen reaching one billion euros, is reportedly receiving a mass inflow of enquiries by funds from around the world, including the US, UK, France, western Europe, and Australia, expressing interest to acquire sizeable company stakes in excess of ten percent.

PPC is currently engaged in a continual flow of talks with investors ahead of the company’s general shareholders’ meeting, scheduled for October 19.

The power utility remains committed to its initial goal of maximizing participation for as many quality funds as possible, preferred over the participation of a limited number of funds.

The equity capital increase’s share price is expected to be set between 8 and 8.50 euros per share.

Taking, as an indicator, the interest of funds in the still-unfinished 49 percent privatization of distribution network operator DEDDIE/HEDNO, a PPC subsidiary, interested parties in the power utility’s equity capital increase could include Macquarie, the winning bidder in the DEDDIE/HEDNO privatization, CVC Capital, Blackrock, Ardian, KKR, First Sentier, Oak Hill, and Helikon Investments Limited, already holding a 5 percent stake in PPC.

The interest may also include players who placed offers for PPC’s 7-year bond issue in July. They include EBRD, Fidelity, Apollo, Carmignac, Twenty Four AM, Bluecrest and Pictet, Union Investments, Sona Asset Management, Barings, Aperture, Saba Capital and Vontobel.

In addition, a number of other players expressed early interest during roadshows late last year. These include Bell Rock Capital, Allianz Global Investors, Sephora Investment Advisors, Waterwill Capital Management, Cleargate Capital, and Zenon Investments.

The upcoming equity capital raise is expected to result in a decrease of privatization fund TAIPED’s current stake in PPC from 51 percent to 34 percent.

PPC chooses FMO for equity capital increase, more potential

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Power utility PPC’s equity capital increase, announced last Friday, will be staged as a free market offer (FMO) procedure with accelerated book building, meaning that the discount at which the equity capital increase will be held will be determined by the offers to be submitted to the issue’s book.

Also, PPC will be able to announce a bigger equity capital increase should oversubscription be achieved.

The administration’s decision to opt for an FMO procedure rather than a customary method of pre-determined prices is expected to create competition among participants, which could produce a better result, both in terms of the discount and funds to be drawn, officials explained.

PPC will be able to revise, upwards, its 750 million-euro equity capital increase if the procedure is oversubscribed, the officials added.

The power utility’s administration began talks with prospective participants of the equity capital increase last Friday and will continue these talks until the end of October, when the book building procedure will commence.

PPC is aiming to attract 750 million euros. The procedure will result in a decrease of privatization fund TAIPED’s current stake in the company from 51 percent to 34 percent.

 

 

PPC equity capital increase to reshape market, rivals on alert

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Power utility PPC’s plan, announced late last week, to proceed with a 750 million-euro equity capital increase, effectively a partial privatization that will result in a decrease of privatization fund TAIPED’s current stake in the company from 51 percent to 34 percent, promises to free the utility from restrictions imposed on state-controlled companies, boost its finances and enable the company to further consolidate its position as the dominant market player.

Rival players in the electricity and RES markets are closely following the developments, realizing the energy market map is headed for a major reshape if PPC’s equity capital increase is successfully completed.

PPC, as a transformed, independent corporation without state-company restrictions will be a much harder force to reckon with as it can be expected to charge ahead with an aggressive investment strategy in Greece and the Balkans, market players have commented.

Also, PPC, reshaping for a focus on green energy, will benefit from many advantages in the RES market, including the right to utilize its outgoing lignite areas for renewables, as well as priority grid dispatch rights given the strategic importance of its investments for the country, market officials have noted.

In response, rival players will now need to strengthen their capital standing and also consider strategic partnerships.

 

PPC planning equity capital increase, big funds involved

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Power utility PPC will proceed with a 750 million-euro equity capital increase, effectively a partial privatization coming twenty years after a previous round at the bourse that will result in a decrease of privatization fund TAIPED’s current stake in the company from 51 percent to 34 percent.

The company administration’s step back for a minority share, plus management, aims to maximize the participation of foreign institutional investors, who, along with local investors, are expected to easily cover the equity capital increase’s financial demands.

US, British and northern European funds are among the interested parties, private talks held over the past six months, at least, have indicated, energypress sources informed.

Blackrock, EBRD, Fidelity, Apollo, Carmignac, Twenty Four AM, Bluecrest, Pictet, Union Investments, Sona Asset Management, Barings, Aperture, Saba Capital and Vontobel are funds that could be involved, it is believed.

The equity capital increase paves the way for the influx of capital that will contribute to PPC’s 8.4 billion-euro investment plan until 2026, currently ranked as the most ambitious in the Greek market.

Besides the installation of RES units with a total capacity of 8.1 GW, PPC also aims to branch out into the Balkans, beginning with projects in Romania and Bulgaria.

Romania’s RES market is growing at an annual rate of 8 percent, the country’s objective being to reach an installed capacity of 6 GW by 2030. Bulgaria’s RES market is growing at an even greater rate, 15 percent. The neighboring country’s objective is to have installed a further 3 GW by 2030.